The head of Rosemead-based Edison International on Tuesday, April 28, endorsed a state report that called for an immediate and coordinated effort to reform California’s handling of environmental catastrophes, from wildfires to earthquakes.
Pedro Pizarro, chief executive officer of Edison International, agreed with the report released last week by the California Earthquake Authority that inaction was not an option.
“This (report) gives the Legislature a much more robust platform. This can’t be just about utilities. This can’t be just about insurance,” Pizarro said, in answer to a question during the company’s first quarter earnings call.
“Without action this year, we’re going to see some real dire impacts,” he said.
The study on how to handle the state’s climate-related crises followed the devastating fires that leveled large parts of Pacific Palisades and Altadena in January 2025.
While a state investigation continues into the cause of the Eaton fire, which destroyed more than 9,000 structures and killed 19 people, Pizarro has said that it might have been ignited by a long-idle Southern California Edison tower that began active during the high winds.
If SCE is found liable for the fire, most of the financial damages would be covered by the state Wildfire Fund, fueled by ratepayers and shareholders of SCE and two other privately owned utilities. Meanwhile, SCE has established a compensation program for Eaton fire survivors who agree not to join one of the dozens of lawsuits filed against the utility.
So far, SCE has made nearly 1,500 offers totaling more than $500 million to survivors.
The report, mandated by Senate Bill 254, gives lawmakers options on how utilities, insurance companies and the state can work together to brace for the next catastrophe.
One of the options is to commit to reducing wildfire risks, by — among other things — tying safety to compensation for electric utilities executives. Another wildfire reduction option is to offer financial and technical support to community wildfire mitigation projects.
The report also recommends spreading the catastrophe costs among all parties. One way would be to strengthen access to residential property insurance for all homeowners and renters. Another proposed option is to eliminate inverse condemnation for all wildfires caused by electricity and gas utilities. Inverse condemnation is the legal argument that allows property owners to sue utilities for fire damage regardless of whether the utility was negligent.
The study also proposes that California establish a state-administered wildfire liability insurance program for electric utilities.